In a report published by Capital FM on November 11, 2026, the authority said it had identified continued cases of buyers imposing commercial conditions that could violate the Competition Act.
CAK Director-General David Kemei said some retailers were transferring operational costs and business risks to suppliers through their stronger bargaining positions.
The practices identified include demanding rebates, requiring suppliers to contribute towards promotions and extending payment periods.
The authority also raised concerns about unfavourable conditions imposed through joint business plans between retailers and their suppliers.
Other practices that could amount to abuse of buyer power include delaying payments, terminating supply contracts without proper justification and refusing to receive goods contrary to agreed contractual terms.
CAK said buyers should not dictate commercial conditions simply because they have greater bargaining power. Instead, supply agreements must result from genuine negotiations, good-faith discussions and meaningful engagement.
The regulator also clarified that it had never directed suppliers in the retail sector to enter into joint business plans with buyers. Such arrangements must remain voluntary.
The authority warned that signing a supply agreement does not automatically establish that its terms were fairly negotiated or that the conduct complies with the law.
Businesses found guilty of criminal abuse of buyer power risk fines of up to KSh10 million, imprisonment for up to five years, or both. CAK may also impose administrative financial penalties of up to 10 per cent of a company's gross annual turnover in the preceding financial year.
The authority said it was monitoring commercial practices in the retail sector and would investigate specific businesses where evidence of violations emerges.
It has urged suppliers experiencing unfair treatment to preserve draft and signed agreements, correspondence, payment records and other documents showing how their commercial terms were negotiated.
The warning puts retailers on notice as the regulator moves to strengthen fairness and accountability in business relationships across Kenya's retail sector.
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